UT Southwestern to Identify and Validate Novel Gene Expression Biomarkers Involved in Wound Healing with Innovative Gene Expression Platform

FREMONT, Calif., Jan. 8 — WaferGen Biosystems, Inc. (OTC Bulletin Board: WGBS), a leading developer of state-of-the-art gene expression, genotyping, cell biology and stem cell research systems, today announced the signing of a research collaboration with the University of Texas Southwestern Medical Center for the SmartChip(TM) Real-Time PCR System. Under terms of the collaboration, UT Southwestern will conduct novel research projects using the SmartChip Real-Time PCR System in order to identify and validate gene expression biomarkers related to wound healing. Additionally, researchers will aim to examine the impact the identified biomarkers have on patients’ response to treatment.

WaferGen and UT Southwestern scientists believe that the research conducted as part of this collaboration may lead to the discovery of the relative importance of specific genes associated with wound healing. In turn, this critical genetic information may ultimately provide physicians with new tools for determining appropriate treatments for wound healing.

“The establishment of this exciting research collaboration is an important milestone for WaferGen as it serves as a powerful validation for our SmartChip Real-Time PCR System and the value it offers to the research community,” stated Alnoor Shivji, WaferGen’s chairman and chief executive officer. “UT Southwestern Medical Center is one of the top academic medical centers in the world and we are proud to be able to support the important work being conducted by its impressive team of researchers. We look forward to the important discoveries that Dr. Brown and his team may make with the SmartChip platform.”

“We are very impressed with the potential of the SmartChip Real-Time PCR System’s innovative capabilities and are eager to initiate our gene expression research programs with this breakthrough platform,” stated Spencer Brown, Ph.D., Director of Research, Nancy Lee and Perry Bass Advanced Wound Healing Laboratory in the Department of Plastic Surgery at UT Southwestern. “We believe that the experiments that will be enabled by the clinical validation of the SmartChip system will significantly assist in advancing our research into the field of wound healing and may potentially play a role in impacting the development of treatments in this area.”

About the SmartChip Real-Time PCR System

The SmartChip Real-Time PCR System is designed as the first whole genome, high-throughput gene expression real-time PCR platform. This innovative system, combined with next-generation chemistry and optimized assays being developed by WaferGen, promises to deliver significant speed and cost advantages to researchers in the gene expression and genotyping markets. Based on collaborations established with leading research institutions, WaferGen believes that the SmartChip Real-Time PCR System is positioned as the platform of choice for biomarker discovery and validation. It is estimated that the genetic analysis market alone (comprised of gene expression and genotyping analysis) had approximately $2.4 billion in worldwide revenues in 2006 ($1.74 billion for gene expression and $650 million for genotyping). Total global revenue for this market is estimated to reach approximately $5.0 billion by 2012.

WaferGen believes the SmartChip Real-Time PCR System will be the first platform to combine the high-throughput capability and cost efficiencies of existing microarrays, with the sensitivity and accuracy of real-time PCR. Specifically, the SmartChip Real-Time PCR System’s high density, rapid cycling configuration is expected to provide industry-leading throughput levels, while offering discovery and validation capabilities in a single step. The result will be the ability to conduct gene expression research at a fraction of the time and cost currently produced by existing instrument systems. For example, the company anticipates that whole genome assay time may be significantly reduced with the SmartChip Real-Time PCR System as compared to several days or months with microarrays or real-time PCR, respectively. This decrease in research time has broad economic implications across the drug development industry, particularly for pharmaceutical companies seeking avenues for reducing time to market for their therapeutics. Further, the company believes such throughput will dramatically impact the cost of such assays.

Beyond the significant time and cost advantages, the simplicity of the SmartChip Real-Time PCR System is unparalleled. The system will provide a number of key ease-of-use features including content-ready chips with gene panels optimized for cancer, toxicology and whole genome. The user-friendly SmartChip Real-Time PCR System will be preloaded with some of the reaction components. At the same time, the system will only require a very small sample size as compared to other technologies and platforms and will offer real-time detection and sophisticated read-out options while assuring detection sensitivity and temperature uniformity across chips.